Bought a new house that is my primary residence. Paid loan origination fee of $x to mortgage broker (say BankA) and loan discount fee of $y to lender (say BankB). Both these fees are shown in section 800 of settlement statement. Per checklist in pub 936 and discussion w/ IRS agent, was told that I could take deductions for amounts $x and $y as points not reported on 1098 while filing taxes.
After hanging up with IRS agent, noticed section 200 of settlement statment showed “broker credit” paid by BankA equal to loan discount fee $y. In other words, BankA paid loan discount fee to BankB, essentially reducing my closing cost.
My confusion/question is whether I can include $y as deduction for points not reported on 1098?
Would appreciate any input.
Thank you,
-Topper
Rent A Car Enterprise
